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Overlooking the economy cabin on United's 787 Dreamliner (Photo: AirlineGeeks | Ryan Ewing)

The Importance of PRASM: What Is It and Why Is It So Critical for U.S.…

Passenger Revenue per Available Seat Mile (PRASM) is a term thrown around the airline industry often. It’s a division of passenger revenue by available seat miles. The question of its importance has caused a divide between many, including analysts and airline executives. Revenue vs. Net Income The U.S. airlines in the past few years have been consistently performing well and reporting strong bottom-line profits and net income. Revenues, one of the metrics used in PRASM calculations, however, have been somewhat…